Updated Renewable Energy Policies : Case of Thailand

Updated Renewable Energy Policies : Case of Thailand Dr. Twarath Sutabutr Deputy Director-General Department of Alternative Energy Development and Efficiency 2013 International a Conference ee ceon Alternative eenergy egyin Development eop e Countries and Emerging Economies (2013 AEDCEE) 30 May 2013 Pullman Hotel, Bangkok, k Thailand 1

Content 1. Thailand Energy at a Glance 2. 3. 4. Alternative Energy Development Plan (AEDP) and Some Updated Policies Policy Supports for Wind Projects Some Thoughts on Small-Wind 5. Key Take-Aways 2

1 Thailand Energy at a Glance

Black Out in The South of Thailand

Thailand s Energy situation in 2012 Total Energy Consumption in 2012 = 73,316 ktoe Final energy consumption by economic sector Commercial Agriculture Residential Transportation Industry Total Energy Use 2.0 million barrels (oil equivalent) per day = 1.9 trillion baht Energy import value in 2012 = 1.125 trillion baht (Sharing 18% of GDP) => 77% of import value = Crude Oil 5

Thailand s Energy Situation in 2012 Proportion of Import and Domestic Production Domestic production Import Import Value (10 3 million baht) Crude oil 15 85 927 Petrolium Products Natural Gas 74 99 1 10 26 136 Coal 49 51 40 Electricity 96 4 12 0 10 20 30 40 50 60 70 80 90 100 Import 81% of oil consumption Import 56% of overall energy demand Total 1,125125 6

Thailand s Electricity Situation 2012 Over-reliance on Natural Gas Supply : Key Risk Area 100% 80% Natural GAS 60% Fuel Oil 40% Coal 20% 0% Hydro 2 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 007* Renewable energy 6.5% Fuel oil/diesel 0.6% Coal/Lignite 19.8% Natural gas 73.1% Power generation 2012 by energy sources 7

Thailand Electricity Load Profile 8

Import Electricity form neighbors CHINA Capacity : 694,000 MW Sources : wikipedia.org MYANMAR Capacity : 39,720 MW Souces : Ministry of Power, India LAO PDR Capacity : 26,000 MW Sources : United Nations CAMBODIA Capacity : 10,000 000 MW Sources : European Commission 9

Thailand s Transmission System (30 April 2012) Installed Generation Capacity: 31,000MW Substations: 211 Transformers: 84,630 MVA Length: 30,840 Circuit-kilometers Area of Recent Blackout (14 Southern Provinces) 1 st time in 35 years 10

Thailand Electricity Challenges Increased and fluctuated world oil/gas price Limited petroleum reserved needs to import 85 % of supply 70% of electricity supply depends on Natural Gas (LNG-very expensive) Lacking of public acceptance on Energy projects affects long term energy security 11

2 Alternative Energy Development Plan (AEDP) and dsome Updated dpolicies i

Renewable Energy Policies Critical Factors of Renewable Energy Dissemination : 1. Government policies on Target & Incentives 2. How much the existing National Grid can take up RE-power 3. Grid idparity : RE Cost vs. ElectricityTariff it iff

How we count RE. Fossil fuels Renewable Energy & Traditional Biomass Power Generation 1.3 % (Solar/Wind/Biomass /MSW/Biogas) Small Hydro Power 0.1% Imported Hydro power Heat 6.9% (Solar/Biomass /MSW/Biogas) Large Hydro power Renewable Energy (under AEDP) /MSW/Biogas) 9.99 % Biofuels 1.6% Traditional RE 10.5%

Alternative Energy Development Plan (AEDP) Committed to the development of low-carbon society Government Funding On R & D & D Activities 10 years Alternative Energy- Development Plan (AEDP-Master Plan 2012-2021) 2021) Private-Led Investment Target 25 % of RE (excl. Large Dams, Imported Hydro & Traditional Biomass) in Total Energy Consumption By 2021 New energy Hydro power plant Bio-energy Biofuels Ocean & Tidal Geothermal 2 MW 1 MW solar 2,000 MW wind 1,200 MW Sm all 324 MW Mi cro Pumped- Storage 1,284 MW biomass Bio-gas MSW 3,630 MW 600 MW 160 MW Ethanol 9 ML/day Biodiesel 2 nd Gen. Biofuels 9 5.97 25 ML/day 25 ML/day 3 MW 3,200 MW 1,608 MW 4,390 MW Renewable fuel 44% Excl. Large Dams & Imported Hydro Excl. Traditional Biomass

Renewable energy potential RE Potential ti Natural Solar Hydro Wind Crop Sugar cane (Molasses) Cassava Palm Waste Agricultural Industrial Municipal solid waste (MSW) wind Solar Ethanol & biodiesel Biomass & biogas Salween river = 15,000 MW Mae Khong = 10,000000 MW *Total realizable potentials for RE in ASEAN 6 countries, by technology to 2030 ; IEA 2010 16

Renewable Energy Policy Measure for RE Promotion BOI- Investment Incentives Offices giving licenses ONEP EIA ERC- DIW Local Admin Supports from the Ministry of Energy DEDE 1 2 DEDE 3 DEDE 4 EPPO 5 Licenses Renewable energy maps Data from demonstration Technical support site Renewable energy potential Subsidy request info Investment Grant 1. Biogas Private 2. Solar hot water Investor 3. MSW Carbon Energy Soft Loan Revolving funds for Renewable energy and energy conservation ESCO Venture Capital lfund Future change of Adder to Feed in Tariff (FIT) Policy Banks Adder/ FIT (pending) loan - Firm - Non Firm Electricity i authorities credit sale CDM Consumers 17

AEDP targets and Current Situations Types Units Goal 2021 Electricity MW 9,201 ktoe, Current Capacity March 2013 3,032 MW Solar MW 2,000 486.30 Wind MW 1,200 215.18 Small Hydro MW 1,608 101.75 Biomass MW 3,630 1,988.85 Biogas MW 600 196.95 MSW MW 160 42.72 Heating Ktoe 9,335 4,882 Ktoe Solar Ktoe 100 4.0 Biomass Ktoe 8,200 4,342 Biogas Ktoe 1,000 458 MSW Ktoe 35 78 Biofuel ML/day 39.9797 5.2 ML/day Ktoe Ethanol ML/day 9 2.3 Biodiesel ML/day 5.97 2.8 Total RE (ktoe) 7,294 Now 9.9% of RE in Total Energy Consumption 3

Thailand s Energy situation in 2012 Installed Capacity of RE power generation Fossil Fuel 28,140 MW Imported Hydro 2,185 MW Large Hydro Power 3,406 MW Biogas Renewable Energy 2,786 MW Biomass Solar MSW Small Hydro Power Wind MW RE

RE On-grid Power Plants Map North Total 1,458 MW - Large Hydro = 1,279 MW - Biomass = 110 MW - Mini hydro = 40 MW - Solar = 24 MW - Geothermal = 0.3 MW - Biogas = 5 MW South Total 430 MW - Large Hydro = 312 MW - Biomass = 48 MW - Mini hydro = 4 MW - Solar = 0.1 MW - Biogas = 47 MW - Wind = 2 MW - MSW = 17 MW Northeast Total 1,377 MW - Large Hydro = 737 MW - Biomass = 352 MW - Mini hydro = 24 MW - Solar = 120 MW - Biogas = 51 MW - Wind = 180 MW Central Total 1,606 MW - Large Hydro = 1,078 MW - Biomass = 241 MW - Mini hydro = 13 MW - Solar = 230 MW - Biogas = 43 MW - Wind = 0.1 MW - MSW = 1 MW

Some Policies Updated 1. Commitment on Renewable Energy; New PDP 2013 focus more on RE Grid Expansion 500 kv in both North-Eastern and Southern Routes, leading to More Grid-Capacity to take up more RE projects. Possible New 500 kv Lines EGAT Demonstration Projects 2. FiT-scheme is still under discussion. Adderscheme is still very much valid, esp. for Wind. 3. Shifting in Incentives Programs More for Community or Household-scaled Projects, i.e. Solar-PV Rooftop and Napier Grass Biogas Digestor. Under Study 4. Renewable Energy Committee (existing since July 2010)

EGAT s Renewable Energy Demonstration Plan Renewable Energy 2011-2015 2015 2016-2020 2020 2021-2030 2030 Total Unit: MW Hydroelectric Pumped Storage Dam 104.5 (12 Projects) - 500 (1 Project) 52.6 (10 Projects) - 500 (1 Project) 42 (12 Projects) 199.1 (34 Projects) Wind 21 50 120 191 (2 Projects) (1 Project) (4 Projects) (7 Projects) Solar 5.5 0.5 40 46 (2 Project) (1 Project) (4 Projects) (7 Projects) Municipal - 3.75 15 18.75 Solid Waste (2 Projects) (2 Projects) (4 Projects) Total 131 606.85 217 954.9 22

Procedure of SPP Power Purchase SPP Regulations Announcement SPP Firm submits Bid Bond @500 Bt/kW SPP NF Renewables requesting Adder submits Bid Bond @200 Bt/kW (to return after COD) EGAT Announcement for SPP Power Purchase SPP Submission of Proposal to EGAT EGAT/PEA/MEA: Feasibility Study for Grid Connection SPP Renewables Renew. Committee Consent 90 days EGAT Issuance of Letter of Intent for Power Purchase SPP Firm RE submits 1. Performance Bond 2. EIA Report SPP NF submits EIA report (required by Thai Laws) SPP Renewables Renew. committee approval PPA Execution EGAT and between SPP sign EGAT PPAand SPP SPP COD Commencement within 2 years SCOD as specified in the PPA

3 Policy Supports for Wind Projects

Policy Support for Wind Projects Potential Area Policy Supports 1. Land Regime esp. for Foreign Investor BoI (Land ownership: Cha-note) Sor-Por-Kor (Rights within the Agri-Land Reform) & Sor-Por-Kor 4-01 (Leasing Rights/Titles) 2. Maps Macro-Scale Wind Map & Data from Ground Station Micro-Scale Maps 3. Data from Demonstration Projects

Wind Energy 2012 Installed Wind Power = 7.28 MW Targeted in 2021 1,200 MW Proposals to Invest (as of May 2012) -SPP (10-90 MW) = 1,606.1 MW - VSPP (<10 MW) = 36.25 MW Tropical Wind 26

Thai Wind Maps & Ground Stations 23 Wind stations ti at 90 m height ht 45 Wind stations at 40 m height Potential Sites

Microscale wind map in Thailand (ongoing g project) Zone 2 Zone 1 Zone 8 Zone 9 Zone 15 Zone 6 Zone 10 Micro scale wind map : 200X200 meter (on process) Zone 11 Zone 12 Zone 14 Zone 3 15 zones 5 zones Done Zone 13 Zone 7 Zone 5 Zone 4 11

Data from Demonstration Projects Hua Sai Project @ Nakornsritammarat %CF 25 Installation 1,500 kw 20 15 2009 2010 10 2011 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

4 Some Thoughts on Small-Wind

4. Low-Speed WTG : Vertical vs. Horizontal Design 31

Leam Chabang Port Project

5 Conclusions & Key Take-Aways

Key Take-Aways 1. Introduction to Thailand and Thailand s Energy Sector 2. Thailand has L/T goal as well as supporting policies for RE- investment.

6 Introduction to Thailand s Ministry of Energy

Ministry of Energy Mr. Pongsak Ruktapongpisal MINISTER of ENERGY Energy Regulatory Commission Government Agency Office of the Ministeri Department of Mineral Fuels Department of Alternative Energy Development and Efficiency Public Organization Office of the Permanent Secretary Nuclear Power Plant Development Office Regional Energy Offices/ Provincial Energy Offices Department of Energy Business State Owned Enterprise and Public Company Energy Policy and Planning Office Energy Fund Administrative Institute EGAT PTT 36

Specialist Director General (Mr.Amnuay Thongsathitya) Internal Auditing Group Renewable Energy Energy Efficiency Supporting Deputy Director General (Dr.Twarath Sutabutr) Bureau of Energy Research Bureau of Alternative Energy Development Bureau of Solar Energy Development Bureau of Biofuel Development Bureau of Energy Regulation and Conservation Bureau of Energy Efficiency Promotion Bureau of Human Resource Development Bureau of Technology Transfer and Dissemination Bureau of Central Administration Bureau of Central Administration Alternative Energy and Efficiency IT Center Administrative System Development Group 37

Vision To be the knowledge-based organization and the center for sustainable development of alternative energy and energy conservation Mission To develop, promote, and support sustainable clean energy production and consumption in areas as appropriate, to develop clean energy technology for commercial purpose in domestic and international market, and to create energy knowledge-based network society for economic stability and sustainability of social well-beings. Authorities and functions Ministerial Regulations on Government Organization Structure 2008 Energy Development elopment and Promotion Act 1992 Energy Conservation Promotion Act 1992 (amended in 2007) 38

www.dede.go.th 39

7 Back-Ups : SPP & VSPP Contracting Regulations

Types of Renewables SPP ค 1 (Kaw 1): Non Conventional Energy e.g. Wind Turbine, Solar Energy, Mini Hydro etc. ค 2 (Kaw 2): Combustible Fuels from ค 2 (Kaw 2): Combustible Fuels from 2.1 Agricultural Waste or Wastes Agri. and Industrial Products. 2.2 Processed Materials from 2.1 above. Non-Firm Only!! 2.3 Municipal Solid Waste. 2.4 Forestry Firewood. Firm or Non-Firm Fossil fuels supplemented must not exceed 25%, otherwise as being cogeneration plant SPP, primary energy saving (PES) obligation is imposed. ค 3 (Kaw 3): Residue Energies 3.1 Waste Heat e.g. Steam from Agri. and Industrial Processes. 3.2 Waste Heat from Engine Firm or Non-Firm 3.3 Residual Energy e.g. Mechanical Power from Pressure Reduction Process.

SPP Renewables Contract SPP Regulations Firm Renewables Non-Firm Renewables Contracted Capacity >10-90 MW >10-90 MW Contract Term 20-2525 yrs 5 yrs and Continue. Fuel Type Renewable Energy Renewable Energy Conditions Supplementary Fuels Supplementary Fuels <= 25% <= 25%

Price Structure: SPP Renewable Energy Firm Non firm CP + EP + FS + REP + Adder Wholesale Tariff @11 33kV+ Ft+ Adder CP = Capacity Payment (rate in Bt/kW/month) EP = Energy Payment (rate in Bt/kWh) FS = Fuel Saving (rate in Bt/kWh) REP = Renewable Energy Promotion (rate in Bt/kWh) Adder = Adder for Renewables (rate in Bt/kWh)

Adder for Renewable Energies March July 2010 h2009 Present July 2010 Renewable Energy Type Adder Rate For 3 Southernmost Provinces + 4 Districts in Songkhla No. of (Baht/kWh) Extra Adder Total Adder Year Biomass <= 1 MW 0.50 1.00 1.50 7 >1 MW 0.30 1.00 1.30 7 Biogas <= 1 MW 0.50 1.00 1.50 7 > 1 MW 0.30 1.00 1.30 7 Mini-Hydro <50 kw 1.50 1.00 2.50 7 Mini-Hydro 50-200 kw 0.80 1.00 1.80 7 MSW Digestion or Land-filled 2.50 1.00 3.50 7 Thermal Process 3.50 1.00 4.50 7 Wind <= 50 kw 4.50 1.50 6.00 10 > 50 kw 3.50 1.50 5.00 10 Solar (PV) 6.50 8.00 1.50 8.00 9.50 10

Thailand ESI: Enhanced Single Buyer G Tariffs Bidding Competition before signing long-term PPA 10 MW Foreign (3%) Feed-in Tariff PPA (Firm, Non-Firm) >10~90 MW VSPPs EGAT IPP SPP (<1%) (45%) (42%) (10%) Gov t T D C TOU Wholesale Rate + Ft w TOU Retail Rate + Ft R EGAT Transm. Syst. / S. O. MEA (32%) PEA (66%) End Users End Users Account Unbundling and Ring Fencing Direct Customers NEPC EPPO/ DEDE ERC etc.

1990 Policy Benchmarking ** 1991 StrEG * 1995 2000 2005 2010 Kyoto Protocol 2000 EEG ** Directive ** 2001/77/EC 2004 EEG ** 2009 EEG ** ** RPS ** SPP R.E. : 25% VSPP No Limited Entry for R.E. Competitive Subsidy for R.E. SPP Tariff+ Adder * ** SPP Renewables Net Metering <1MW: Net Metering 1 10 MW Tariff+ Adder * First Commencement of COD ** Key Changes or Additions in Regulation

Renewables Promotion Mechanisms RPS FIT FIT

dd Adder Repelling Avoided d Cost Cogeneration Cogeneration Renewables Renewables Unbundling of Incentive Schemes.

Criteria to Justify Issuance of Letter of Intent for Power Purchase from Renewables 1 2 3 4 Specific connection point. Specific SCOD. Grid network can receive power as per SCOD. Technical consent from EGAT. 5 Security is provided. 6 7 8 Feasible project plans. Fuel sufficiency (identification of sources and management for biomass. Evidence of land right for wind.

Criteria to Justify PPA Execution 1 Letter of Intent for Power Purchase. 2 3 4 Technical consent from EGAT. Readiness on 4 aspects. -Land right acquisition - Source of fund - Technology supply - Licenses (as required by laws). Agreement on system upgrade costs (if any). 5 EIA granted. 6 Performance Bond (for SPP Firm).

SPP Status (as of April 2013) Description Firm Non-Firm Total 1. SPP in Operation -Numbers of SPP 50 22 72 - Contracted Capacity (MW) 2,804.6 656.923 3,461.523 2. SPP with PPA Execution - Numbers of SPP 45 7 52 - Contracted Capacity (MW) 4,050.0 490.00 4,540.0 3. SPP under Consideration -Numbers of SPP - Contracted Capacity (MW) 5 382.0 17 899.0 22 1,281.0 Total - Numbers of SPP 100 46 146 - Contracted Capacity (MW) 7,236.6 2,045.923 9,282.523

SPP Status by Fuels (as April 2013) Fuels/Technologies Renewables Under Consideration No. of SPP Contracted Capacity (MW) LOI for Power Purchases (In Waiting for PPA) No. of SPP Contracted Capacity (MW) PPA Execution (Under Construction) No. of SPP Contracted Capacity (MW) No. of SPP In Operation Contracted Capacity (MW) 1. Solar 6 381.00 - - 1 30.00 1 55.00 2. Biogas - - - - - - - - 3. Biomass 4 131.00 1 90.00 1 22.00 3 46.70 4. MSW 5 330.00 - - - - - - 5. Hydropower - - - - - - - - 6. Wind 7 555.00 5 410.00 - - - - 7. Others 1/ - - - - - - 22 656.15 Mixed Fuels 1. Mixed Fuels 2/ - - - - - - 11 250.7 Total 22 1,397 6 500 2 52.00 37 1,008.55 Notes: 1/ Black Liquor, Waste Gas and Gas Byproduct from Crude Oil Production Process 2/ Waste Gas from Industry, Fuel Oils+ Coal, Coal + Black Liquor, and Coal + Eucalyptus

Typical Supports for Renewables (1) Quota System (Renewable Portfolio Standard) Renewables Tender Hard to set requirements. Green Power Program/Market Public R&D Surcharges to Fossil Fuels Production Tax Credits Investment Tax Credits Unnecessary business risk. Soft Loan Whose Funds? Feed in Tariffs/Premiums Effective, direct to output Considerations: Who pay? Who gain? How directly on indirectly) incentives impact to?

Ref. : Prof. Dr.-Ing. Christoph Menke (JGSEE) Typical Supports for Renewables (2) Support/Price Set by Authorities Amount Set by Market Government Pays Investment Aid Tax Support Customers Pay Feed-In Tariffs (fixed or premiums) Support/Price Set by Market Amount Set by Authorities Tendering Quotas + Green Certificates

Thailand ESI: Dispatching Regimes Fully Dispatchable Droop and AGC Firm Month-Ahead Fixed Dispatch or Non-Firm No Dispatch G T D C VSPPs No Dispatch EGAT Gen. IPP EGAT Transm. Syst. / S. O. MEA End Users PEA End Users SPP Direct Customers G O V E R N M E N T

Thailand Private Power Producers IPP (Independent Power Producer) Large producers, typically 350 3,645 MW. Whole produced electricity sold to EGAT. Divestiture from EGAT, or BOO. SPP (Small Power Producer) >10~90 MW sold to EGAT with any installed capacity. Eitherrenewable renewable energy or cogeneration. Connection point: any EGAT, MEA or PEA system. VSPP (Very Small Power Producer) 10 MW sold to MEA or PEA. Eitherrenewable renewable energy or cogeneration. Incentive in the past: net metering.

2550 Regulation SPP Firm: CP (1) Payment = CP + EP + FS + REP + Adder CP = CP_Rate * BC CP_Rate = CP Base * (FX/37*0.5+0.5) CP_Rate and CP Base are specified in Baht/kW/Month FX= Foreign Exchange in Baht/USD Type CP Base (Bt/kW/Month) Cogen. NG 383.66 Cogen. Coal 624.34 R.E. 624.34 If SPP terminates PPA before the term of contract ends, CP shall be recalled in associating to the actual period of term of contract.

2550 Regulation SPP Firm: EP (1) Payment = CP + EP + FS + REP + Adder EP = EP_Rate * kwh Type Cogen. NG EP_Rate 1.70+(Price NG 209.4531) /1,000,000 * HR NG Cogen. Coal 0.88+(FX*Price Coal 1,930.475) /26,587,700 700 *HR Coal R.E. 0.88+(FX*Price Coal 1,930.475) /26,587,700 * HR Coal NG Price announced by PTT Coal Price by y( (ABARE+BJ:JPU)/2 HR NG = 8,000 BTU/kWh HR Coal = 9,600 BTU/kWh

SPP: Firm FS, REP and Adder Payment = CP + EP + FS + REP + Adder FS = FS_Rate * kwh REP = REP_Rate * kwh Adder = Adder_ Rate * kwh FS_Rate, REP_Rate and Adder_Rate are quoted in Bt/kWh. Fuel Saving Type REP_RateRate Adder FS 0 FS_Rate Cogen. NG 0.36 FS 0 *PES/10 0 0 Cogen. Coal 0.36 FS 0 *PES/10 0 0 R.E. 0.36 FS 0 0.39 Get Adder PES stands for Primary Energy Saving determined to cogeneration process. Assessment formula is identical to VSPP s PES. And, FS_Rate shall not exceed FS 0.

Wholesale l Rate and Ft W (Baht/kWh) Wholesale Rate Voltage Level Peak Period Off-Peak Ft (Mon.-Fri. 9:00-22:00 except Holidays) 230 kv 3.0227 2.0173-0.0167 0167 230 kv (69-115 kv) 3.2504 2.0198-0.0167 69-115 kv 3.6781 3.6781-0.0167 11-33 kv 3.8548 3.8548-0.0167 Power Factor Charge 18.68 Baht/kVAr/month on those kvar in excessive extent to power factor of 0.875 (Lagging)

Separate Tax Declaration Thailand VSPP: Payment (2) VSPP Payment: Renewable Energy (Sell 1 MW) (Net Metering Concept) PEA / MEA Sell > Buy Wholesale Rate (average all voltage levels) + Ft w +Adder Retail Rate (Normal) + Ft R Sell > Buy Wholesale Rate (11-33 kv) + Ft w +Adder Retail Rate (TOU) + Ft R VSPP Retail Rate (Normal) + Ft R Retail Rate (TOU) + Ft R

Separate Tax Declaration Thailand VSPP: Payment (3) VSPP Payment: Renewable Energy (Sell 1~6 MW) (Net Metering Concept) PEA / MEA Sell > Buy Wholesale Rate (average all voltage levels)+ft w +Adder* Retail Rate (Normal) + Ft R Sell > Buy Wholesale Rate (11-33 kv) + Ft w +Adder* Retail Rate (TOU) + Ft R VSPP Retail Rate (Normal) + Ft R Retail Rate (TOU) + Ft R *7~10-Year Adder calculated on net energy before 2% deducted.

Thailand VSPP: Payment (4) VSPP Payment: Renewable Energy (Sell >6 MW) (Net Metering for Adder) PEA / MEA Sell > Buy Wholesale Rate (average all voltage levels)+ft w +Adder* Wholesale Rate (average all voltage levels) + Ft w Sell > Buy Wholesale Rate (11-33 kv) + Ft w +Adder* Wholesale Rate (11-33 kv) + Ft w VSPP Retail Rate (Normal) + Ft R Retail Rate (TOU) + Ft R *7~10-Year Adder calculated on net energy before 2% deducted.

Biomass Energy Pi Prices and Migrationi Biomass Energy Prices 5.0 4.0 3.0 Oil_Based Firm_2541 Firm_2550 Non-Firm VSPP? 2.0 1.0 00 0.0 Oil-based Gas-based Adder Jan 98 Jan 99 Jan 00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 2007-2009: SPP Non-Firm (162.5 MW) + SPP Firm (16 16.3 MW) VSPP

Jan 08 Jan 09 Wind and Solar Energies Pi Price Wind Energy Prices 7.0 6.0 5.0 4.0 Oil_Based Firm_2541 Firm_2550 Non-Firm VSPP 3.0 20 2.0 1.0 0.0 Oil_Based Solar Energy Prices Jan 98 Jan 99 Jan 00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Adder is Radical Change to Thailand FIT regime. 12.0 10.0 8.0 6.0 4.0 Firm_2541 Firm_2550 Non-Firm VSPP 2.0 0.0 Jan 98 Jan 99 Jan 00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07

Document List in SPP s Proposal (1) 1. Request form for power selling, signed by authorized person. (1 master + 11 copies) 2. Evidence/registration of company or other juristic person. 3. Location/site Map of power plant. 4. Lay-out of power plant. 5. Heat balance diagram, P&ID, showing measuring. 6. Process flow diagram. 7. Calculation of heat rate. 8. In case of cogen., design drawing determining capability to produce useful heat at least 5%. 9. Prime mover/machine nameplate and specification

Document List in SPP s Proposal (2) 10. Single line diagram, and metering and relaying diagram. 11. Production planning- sell to grid and direct sell. 12. Scheduled commercial operating date (SCOD), type of SPP, term of SPP PPA 13. Amount of backup power. 14. Staff, organization chart and engineering licensing. 15. Identification of average fuel heating value (LHV), both primary and secondary fuels. 16. For SPP firm contract: Bid Bond (500 Baht/kW). 17. For SPP renewables non-firm contract and requiring Adder: Bid Bond (200 Baht/kW)

Synchronous Machine Generator Data (1) 1. Type: round rotor vs. salient pole. 2. Ratings: kv, MW, kva. 3. Armature: Amp, kv. 4. Field: Amp, V. 5. Power Factor, Capability Curve. 6. Inertia Constant, Damping Constant. 7. Xd, X d, X d, Xq, X q, X q, Xl, T do, T do, T qo, T qo, S(1.0), S(1.2). 8. Block Diagrams for Governor and Excitation i Systems. 9. Unit Transformer Data and Connection Facility Details. 10. Fuel Details: Primary and Secondary.

Generator Data (2) Wind: Asynchronous Machine 1. No. of Wind Turbine (in a farm), Location, Single Line Diagram, Length and Type of Conduction. 2. Stator: Voltage, MW, R, X; Rotor: Voltage, R, X. 3. Zero Sequence Resistance and Reactance. 4. Inertia, Connection, Magnetizing Reactance. 5. Locked Rotor: Current, R/X. 6. Transformer Data. 7. Other Data: Converter, Inductor, Capacitor, DC Bus. 8. Pitch Data, Shaft, Turbine. 9. Wind Velocity.

SPP Grid Connection Code 1. (For Wind) 4.3.1: Voltage-Ride Through Requirement. 2. (For Wind) 4.3.2: Voltage Regulation System (VRS) must be undertaken with closed loop control with droop. 3. (For Wind) 4.3.3: On-load/Off-load tap transformer must be capable to provide full required range of power factor. 4. 4.1 and (For Wind) 4.3.4: Power Quality Requirement.